By Harry Suhartono

SINGAPORE, Feb 9 (Reuters) - Singapore Telecommunications is eyeing acquisitions in Asia and the fast-growing markets of Africa and the Middle East to boost growth after it reported quarterly earnings in line with estimates.

Southeast Asia's biggest telecoms firm has seen slow growth in Singapore and Australia in recent years, but a strengthening Australian dollar and booming markets in India and Indonesia helped it report a record underlying net profit for October-December.

"SingTel remains an 'underperform' with likely de-rating catalysts coming from competition in India, rising competition in Australia and prospects of a heated 3G spectrum auction in Australia," CIMB analyst Kelvin Goh said in a note.

Some analysts have said a partial float of SingTel's fully-owned Australian subsidiary Optus, estimated at about $3.5 billion, to fund expansion in other markets, will be a key trigger for the stock. The firm said no decision had been made.

SingTel, 54 percent-owned by state investor Temasek Holdings, maintained its outlook for low single-digit growth in earnings before interest, tax, depreciation and amortisation (EBITDA) for its markets in Singapore and Australia.

The company earns about three-quarters of its core earnings from outside Singapore.

"Our focus remains in Asia. That's unchanged. We are also looking at some adjacent markets including Africa and the Middle East," CEO Chua Sock Koong told a news conference when asked about likely acquisitions.

Chua, who began as SingTel's treasurer before being promoted to chief financial officer in 1999, was closely involved in the company's overseas expansion drive. She was appointed CEO in 2007.

Facing a domestic market of 5 million people where virtually everyone has a mobile phone, SingTel has spent S$18 billion in recent years buying stakes in India, Indonesia and in the bigger Australian market.

SingTel had supported a bid by India's Bharti Airtel too buy South Africa's MTN, but the deal collapsed last year.

Among SingTel's regional units, Bharti led growth in mobile subscribers, up 39 percent, but still faces a cloudy outlook due to a price war. In Indonesia, Telkomsel's mobile subscribers rose by a quarter.

In Australia, where SingTel owns second-largest telecom firm Optus, analysts said revenues were better than expected, and income was further boosted by a 27 percent gain in the Australian dollar over the quarter versus the Singapore dollar.

SingTel's shares rose as much as 2.4 percent on Tuesday, outperforming a flat Singapore market.

RECORD PROFIT

SingTel, Singapore's highest valued firm with a market capitalisation of S$46 billion, posted October-December underlying net profit of S$990 million ($695.7 million), up from S$838 million a year ago.

This was just below an average forecast of S$995 million from a Reuters poll of five analysts, but its highest ever underlying profit according to the firm.

SingTel's total global subscriber base grew 22.5 percent to 284.75 million as of December, helping boost quarterly revenue by 20 percent to S$4.45 billion.

SingTel's shares have slipped around 3 percent this year, underperforming Asian rivals and versus a 7 percent fall in the broader Singapore benchmark index.